Truly International Holdings' (HKG:732) Soft Earnings Don't Show The Whole Picture

Simply Wall St.

Apr 25

The market for Truly International Holdings Limited's (HKG:732) shares didn't move much after it posted weak earnings recently. Our analysis suggests that while the profits are soft, the foundations ...

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Our analysis suggests that while the profits are soft, the foundations ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/tech/hkg-732/truly-international-holdings-shares/news/truly-international-holdings-hkg732-soft-earnings-dont-show\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Truly International Holdings' (HKG:732) Soft Earnings Don't Show The Whole Picture</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTruly International Holdings' (HKG:732) Soft Earnings Don't Show The Whole Picture\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-04-25 06:11 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/tech/hkg-732/truly-international-holdings-shares/news/truly-international-holdings-hkg732-soft-earnings-dont-show><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The market for Truly International Holdings Limited's (HKG:732) shares didn't move much after it posted weak earnings recently.  Our analysis suggests that while the profits are soft, the foundations ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/tech/hkg-732/truly-international-holdings-shares/news/truly-international-holdings-hkg732-soft-earnings-dont-show\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"00732","symbol_name":"信利国际","start_time":0,"source_url":"https://simplywall.st/stocks/hk/tech/hkg-732/truly-international-holdings-shares/news/truly-international-holdings-hkg732-soft-earnings-dont-show","article_id":"2630765758","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9612017-choice1-main-header/1585186558495"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/tech/hkg-732/truly-international-holdings-shares/news/truly-international-holdings-hkg732-soft-earnings-dont-show","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2630765758","pubTimestamp":1777068712,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"The market for Truly International Holdings Limited's ( HKG:732 ) shares didn't move much after it posted weak earnings...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"00732":"信利国际"},"translate_title":"信利国际控股（HKG：732）疲软的盈利并不能反映全貌","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00732":1.5},"content_text":"The market for Truly International Holdings Limited's (HKG:732) shares didn't move much after it posted weak earnings recently.  Our analysis suggests that while the profits are soft, the foundations of the business are strong.    Trump has pledged to \"unleash\" American oil and gas and these 15 US stocks have developments that are poised to benefit.SEHK:732 Earnings and Revenue History April 24th 2026 Advertisement Examining Cashflow Against Truly International Holdings' Earnings  In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow).  To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period.  This ratio tells us how much of a company's profit is not backed by free cashflow.  As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative.  While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow.  Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking.  For the year to December 2025, Truly International Holdings had an accrual ratio of -0.35.   That implies it has very good cash conversion, and that its earnings in the last year actually significantly understate its free cash flow.    In fact, it had free cash flow of HK$5.4b in the last year, which was a lot more than its statutory profit of HK$274.2m.    Truly International Holdings did see its free cash flow drop year on year, which is less than ideal, like a Simpson's episode without Groundskeeper Willie.     However, that's not all there is to consider.  The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part.    See our latest analysis for Truly International Holdings  Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Truly International Holdings.  How Do Unusual Items Influence Profit?  Truly International Holdings' profit was reduced by unusual items worth HK$122m in the last twelve months, and this helped it produce high cash conversion, as reflected by its unusual items.  In a scenario where those unusual items included non-cash charges, we'd expect to see a strong accrual ratio, which is exactly what has happened in this case.   It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later.  We looked at thousands of listed companies and found that unusual items are very often one-off in nature.  And, after all, that's exactly what the accounting terminology implies.   Assuming those unusual expenses don't come up again, we'd therefore expect Truly International Holdings to produce a higher profit next year, all else being equal.    Our Take On Truly International Holdings' Profit Performance Considering both Truly International Holdings' accrual ratio and its unusual items, we think its statutory earnings are unlikely to exaggerate the company's underlying earnings power.       Based on these factors, we think Truly International Holdings' underlying earnings potential is as good as, or probably even better, than the statutory profit makes it seem!      If you want to do dive deeper into Truly International Holdings, you'd also look into what risks it is currently facing.    Every company has risks, and we've spotted 4 warning signs for Truly International Holdings (of which 2 make us uncomfortable!) you should know about.    Our examination of Truly International Holdings has focussed on certain factors that can make its earnings look better than they are. And it has passed with flying colours.   But there are plenty of other ways to inform your opinion of a company.  For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying.  While it might take a little research on your behalf, you may find this free  collection of companies boasting high return on equity, or  this list of stocks with significant insider holdings to be useful.  Valuation is complex, but we're here to simplify it.Discover if Truly International Holdings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}